Agenda of Extraordinary Meeting of the Waiheke Local Board

Waiheke Local Board

13 May 2020

Local board decisions and input into the Annual Budget 2020/2021

File No.: CP2020/05102

Te take mō te pūrongo

Purpose of the report

1. To seek approval for local financial matters for the local board agreement 2020/2021, which need to be considered by the Governing Body in the Annual Budget 2020/2021 process.

2. To seek feedback on the proposed regional topics in the Annual Budget 2020/2021.

Whakarāpopototanga matua

Executive summary

3. Our Annual Budget contains 21 local board agreements which are the responsibility of local boards to agree with the governing body. These agreements set out local funding priorities, budgets, levels of service and performance measures.

4. Auckland Council publicly consulted from 21 February to 22 March 2020 to seek community views on the proposed Annual Budget 2020/2021 and local board priorities to be included in the local board agreements (Consultation part 1).

5. Since this consultation was undertaken, the COVID-19 pandemic has exerted significant pressure on the council’s financial position, which will have flow on effects for the proposed budget for the 2020/2021 financial year. The council is now considering what those impacts are likely to be, and plan to ask Aucklanders for their views on certain aspects of Auckland Council’s proposed ‘emergency budget’ in response to the financial impacts of COVID-19 (Consultation part 2).

6. Local boards are required to receive the feedback on the proposals in consultation part 1, which are not affected by the changes being considered by the council and therefore will not be subject to further consultation and make decisions on them. This must be done before consultation part 2 can get underway, so the scope of consultation part 2 is clear.

7. This report seeks decisions on local financial matters for the local board agreement, including:

a) proposed Locally Driven Initiative (LDI) capital projects outside local boards’ decision-making responsibility

b) release of local board specific reserve funds.

8. The council received feedback in person at community engagement events and through written forms, including online and hard copy forms, emails and letters.

9. This report summarises consultation feedback on the proposed Annual Budget 2020/2021, including on local board priorities for 2020/2021.

Feedback on Waiheke Local Board priorities for 2020/2021

10. The local board consulted on the following priorities:

· Progressing the Mātiatia Strategic Plan.

· Implementation of the Tawaipareira and the Little Oneroa concept plans.

· Delivery of projects within the 10-year Transport Plan and the Waiheke Pathways (Greenways) Plan.

· Continuing environmental projects, including ecological restoration, improving the quality of our waterways and predator management.

· Monitoring numbers of visitors and managing impact.

· Supporting community-led programmes in areas such as housing, business, sustainability and youth.

11. 38 submissions were received on Waiheke Local Board priorities for 2020/2021, showing that the majority of people either support most (34 per cent) or support all (34 per cent) of the local board’s priorities.

Feedback on regional proposals in the proposed Annual Budget 2020/2021 from the Waiheke local board area

12. This report seeks local board views on the proposed regional Annual Budget topics including:

· the changes to rates and fees, key proposals:

o waste management targeted rate

o refuse collection in former Auckland City and Manukau City

o Waitākere rural sewerage service and targeted rate

· the draft Tūpuna Maunga o Tamaki Makaurau Authority – Operational Plan 2020/2021

· other budget information.

13. Local board views on these regional matters will be considered by the Governing Body (or relevant committee) before making final decisions on the Annual Budget 2020/2021.

14. Out of the 4765 submissions received on the regional proposals in the Annual Budget 2020/2021, 38 submissions were from people living in the Waiheke local board area.

15. Auckland Council also consulted on the Council-Controlled Organisations (CCO) Review at the same time. The feedback received on this will be presented at a later date.

Ngā tūtohunga

Recommendation/s

That the Waiheke Local Board:

a) receive consultation feedback on the proposed Waiheke Local Board priorities for 2020/2021.

b) receive consultation feedback on regional proposals in the Annual Budget 2020/2021 from people or organisations based in the Waiheke Local Board area.

c) recommend that the Governing Body approves any proposed Locally Driven Initiative (LDI) capital projects, which are outside local boards’ allocated decision-making responsibility.

d) provide feedback on the proposed Annual Budget 2020/2021.

Horopaki

Context

16. Local board agreements form part of the Auckland Council’s Annual Budget and set out local funding priorities, budgets, levels of service and performance measures.

17. Auckland Council publicly consulted from 21 February to 22 March 2020 to seek community views on the proposed Annual Budget 2020/2021 and local board priorities to be included in the local board agreements. This is now referred to as consultation part 1.

18. Since this consultation was undertaken, the COVID-19 pandemic has exerted significant pressure on the council’s financial position, which will have flow on effects for the proposed budget for the 2020/2021 financial year. Work to date on the proposed Annual Budget will need to be adjusted to consider the new financial realities facing Auckland.

19. The financial report presented to the Emergency Committee during April 2020 indicated potential reductions in cash revenue of $350-650m for financial year 2020/2021, depending on the length and extent of the disruption caused by COVID-19. The Emergency Committee requested staff provide further information to the Governing Body on the impacts of the various scenarios modelled against a rates increase of between 0 per cent and 3.5 per cent. They also resolved that further public consultation on the Annual Budget would include considering whether to adopt a 2.5 per cent rather than 3.5 per cent general rates increase for the 2020/2021 financial year, among a suite of other measures aimed at offering support to all ratepayers, including businesses, facing hardship due to the impacts of COVID-19.

20. The council is planning to ask Aucklanders for their views on certain aspects of Auckland Council’s proposed ‘emergency budget’ in response to the financial impacts of COVID-19. It is anticipated this will be carried out from late May until mid-June 2020. This will be in addition to the Annual Budget 2020/2021 consultation we have already carried out from February to March 2020. This is referred to as consultation part 2.

21. Consultation part 2 is unlikely to revisit any of the specific proposals in consultation part 1. Therefore, the local boards and the Governing Body are required to receive the feedback on these proposals and make decisions on them. This must be done before consultation part 2 can get underway so it is clear what decisions have already been made, and what decisions will be made after consultation part 2.

22. Further, some of the proposed changes to fees and charges required a Special Consultative Procedure (SCP) and the requirements for this were met in consultation part 1. It is important to complete this statutory process, especially where consultation part 2 will not be relevant to the decisions on these fees and charges.

23. This report includes analysis of the consultation feedback on the Waiheke Local Board priorities for 2020/2021, and on the regional proposals in the Annual Budget 2020/2021 from people or organisations based in the Waiheke Local Board area.

Local financial matters for the local board agreement

24. This report allows the local board to agree its input and recommend other local financial matters to the Governing Body in May 2020. This is to allow time for the Governing Body to consider these items in the Annual Budget process.

Funding for Locally Driven Initiatives (LDI)

25. Local boards are allocated funding annually to spend on local projects or programmes that are important to their communities. Local boards can approve LDI capital projects up to $1 million, projects over that amount require approval from the Governing Body.

26. Local boards can recommend to the Governing Body to convert LDI operational funding to capital expenditure for 2020/2021 if there is a specific need to do so. Governing Body approval may be needed for the release of local board specific reserve funds, which are funds being held by the council for a specific purpose.

Local board input on regional plans

27. Local boards have a statutory responsibility for identifying and communicating the interests and preferences of the people in its local board area in relation to the context of the strategies, policies, plans, and bylaws of Auckland Council. This report provides an opportunity for the local board to provide input on the proposed Annual Budget.

28. Local Board Plans reflect community priorities and preferences and are key documents that guide both the development of local board agreements and input into regional plans.

Council-controlled organisation (CCO) review

29. An independent panel was appointed by Auckland Council to examine three areas: (1) the CCO model, roles and responsibilities, (2) the accountability of CCOs, and (3) CCO culture. Local boards had the opportunity to provide input into this in March 2020.

30. Auckland Council also consulted on the review of CCOs during the same period as the Annual Budget, from 21 February to 22 March 2020.

31. After receiving feedback, the panel will report on key issues, community and stakeholder feedback to the council in May 2020.

32. The panel will provide a final report and recommendations to the council in July 2020.

Types of feedback

33. Overall Auckland Council received feedback from 4765 people in the consultation period. This feedback was received through:

· Written feedback – 3820 hard copy and online forms, emails and letters

· In person – through 58 Have Your Say events and community events.

Tātaritanga me ngā tohutohu

Analysis and advice

Feedback received on Waiheke Local Board priorities for 2020/2021

34. The Waiheke Local Board consulted on the following priorities:

· Progressing the Mātiatia Strategic Plan.

· Implementation of the Tawaipareira and the Little Oneroa concept plans.

· Delivery of projects within the 10-year Transport Plan and the Waiheke Pathways (Greenways) Plan.

· Continuing environmental projects, including ecological restoration, improving the quality of our waterways and predator management.

· Monitoring numbers of visitors and managing impact.

· Supporting community-led programmes in areas such as housing, business, sustainability and youth.

Feedback received

35. 38 submissions were received on Waiheke Local Board priorities for 2020/2021, showing that the majority of people either support most (34 per cent) or support all (34 per cent) of the local board’s priorities.

36. The Waiheke Local Board held one Have Your Say event on 4 March 2020.

Feedback on other local topics

37. Feedback received on other local topics include:

· Accommodation Providers Targeted Rate – a review is required, and Waiheke should be moved from Zone B to Zone C. (Note this is regional advocacy area).

· Increased focus and funding for the arts.

· Improved infrastructure and roading, and improved parking at Mātiatia.

· Marine health and preservation of the biodiversity of the Hauraki Gulf. (Note this is primarily a regional advocacy area).

· Septic system management.

· Visitor impacts.

· Renegotiate budgets and priorities with a focus on climate change.

· Sustainable waste management.

· Additional programmes that enrich our local community, provide new visitor experiences and enable further employment and internships that contribute to the economy of the island.

Requests for local funding

38. Requests for local funding included:

· An additional $20,000 funding for the Art Gallery and the Theatre to present arts exhibitions and events that are not sustainability driven.

· The Theatre, Gallery, Whittaker's, Cinema and Radio Station to be part of an integrated Cultural Centre, with provision of space for Artists in Residence and Arts Education. to operate as a vibrant multi—faceted facility.

· A playground on Rakino Island.

Information on submitters

39. The tables and graphs below indicate what demographic categories people identified with. This information only relates to those submitters who provided demographic information.

Overview of feedback received on the Annual Budget from Waiheke Local Board area

40. The proposed Annual Budget 2020/2021 sets out our priorities and how we're going to pay for them. The regional consultation on the proposed Annual Budget focused on changes to rates and fees, the key proposals were:

· waste management targeted rate

· refuse collection in former Auckland City and Manukau City

· Waitākere rural sewerage service and targeted rate.

41. The submissions received from the Waiheke Local Board area on these key issues is summarised below, along with an overview of any other areas of feedback on regional proposals with a local impact.

Waste management targeted rate

42. Aucklanders were asked about a proposal to increase the waste management targeted rate.

Question 1: Waste management targeted rate

The cost of responsibly dealing with our kerbside recycling (paper, cardboard and plastics) has increased due to international market conditions.

To pay for this we propose to charge only those who use the service by increasing the targeted rate by $19.97 a year or $0.38 a week (the total cost changing from $121.06 to $141.03 incl. GST).

If we do not do this, we would have to fund the shortfall by increasing general rates for all ratepayers, including those who don’t get a kerbside collection service.

43. The graphs below give an overview of the responses from the Waiheke Local Board area.

44. Submitters raised a number of points relating to waste management on Waiheke, such as:

· Weekly vs fortnightly kerbside collection, and more efficiency required.

· Preference for a proposal which reduces waste.

· Food scrap collection programme supporting local employment.

· Waste is often disposed at central collection or other self-service facilities.

· Separation of recyclable waste.

Refuse collection in former Auckland City and Manukau City

45. Aucklanders were asked about a proposal to increase the refuse collection in former Auckland City and Manukau City targeted rate.

Question 2: Refuse collection in former Auckland City and Manukau City

In the old Auckland City and Manukau City Council areas, households pay for rubbish through a targeted rate. In other parts of the city, residents pay for their collection via Pay As You Throw. The targeted rate for the Auckland City and Manukau City Council areas no longer meets the cost of collection.

To cover this extra cost we propose increasing the targeted rate in these areas by $14.23 a year or $0.27 a week for a 120 litre bin (the total cost changing from $129.93 to $144.16 incl. GST), and an additional $6.68 a year or $0.13 a week for a large 240 litre bin (the total cost changing from $191 to $211.91 incl. GST).

If we do not do this, we would have to increase general rates for all ratepayers, including those living outside these two areas who would subsidise residents of old Auckland and Manukau cities.

46. The graphs below give an overview of the responses from the Waiheke Local Board area.

47. Submitters provided the following feedback on this question:

· Concern over rubbish dumping.

· Look into improving efficiency or reduce operating costs.

Waitākere rural sewerage service and targeted rate

48. Aucklanders were asked about a proposal to increase the Waitākere rural sewerage service and targeted rate.

Question 3: Waitākere rural sewerage service and targeted rate

Last year we consulted on removing the septic tank pumpout service funded by a targeted rate. While feedback indicated a willingness to go ahead with the removal of this service in the Henderson-Massey and Upper Harbour local board areas, residents of the Waitākere Ranges local board area said they wanted to keep the service. The cost of delivering this service is higher than the current targeted rate of $198.43.

Our proposal, for those in the Waitākere Ranges local board area who want the service, is to recover the full cost by increasing the targeted rate to between $260 and $320 a year (incl. GST). This increase would apply from July 2021.

If we do not do this, the council could end the service, or continue to subsidise the cost of the service to septic tank users in the Waitākere Ranges local board area from all general ratepayers, including those who don’t use the service.

49. The graphs below give an overview of the responses from the Waiheke Local Board area.

50. Submitters provided the following feedback on this question:

· Consider composting toilet systems instead.

· Agree with user pays.

Other feedback

51. Aucklanders were asked what is important to them and if they had any feedback on any other issues. This could include the key topics of how we charge for pool fencing inspections, and adjusting our fees and charges.

52. Thirteen submitters supported a review of the Accommodation Providers Targeted Rate (APTR). Eleven made the following statement:

“APTR needs to be reviewed — it is not fairly implemented and is having a negative effect on the Accommodation and Tourism sector on Waiheke Island. The burden is not spread equitably across the sector and there is no transparency in how the rate collected is allocated regionally or in particular for the benefit the Tourism sector in this area. APTR further encourages day visitors rather than a more sustainable multi—day visit — I support moving Waiheke Island from group B to group C for APTR.”

Feedback on the draft Tūpuna Maunga o Tamaki Makaurau Authority – Operational Plan 2020/2021

53. Feedback was received from one person in the Waiheke Local Board area on the draft Tūpuna Maunga o Tamaki Makaurau Authority – Operational Plan 2020/2021.

“Maunga protection should develop food forests using native and exotic plants”

Feedback on other regional proposals with a local impact

54. The following feedback was received from the Waiheke Local Board area on other regional proposals:

· Budgets and priorities require renegotiation with a focus on climate change.

· A focus on marine health and preservation of the biodiversity of the Hauraki Gulf.

· A number of transport issues such as:

o Bus network concerns.

o Double decker buses out of proportion for the island.

o Improvements required for road and footpath network.

Tauākī whakaaweawe āhuarangi

Climate impact statement

55. The decisions recommended in this report are procedural in nature. New targeted rates and the release of reserve funds will not have any climate impacts themselves.

56. Some of the proposed projects these would fund may have climate impacts. The climate impacts of any projects Auckland Council chooses to progress with as a result of this, will be assessed as part of the relevant reporting requirements.

57. Some of the proposed projects these would fund will be specifically designed to mitigate climate impact, build resilience to climate impacts, and restore the natural environment.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

58. The Annual Budget is an Auckland Council Group document and will include budgets at a consolidated group level. Consultation items and updates to budgets to reflect decisions and new information may include items from across the group.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

59. Local board decisions and feedback are being sought in this report. Local boards have a statutory role in providing local board feedback on regional plans.

60. Local boards play an important role in the development of the Annual Budget. Local board agreements form part of the Annual Budget. Local board nominees have also attended Finance and Performance Committee workshops on the Annual Budget.

Tauākī whakaaweawe Māori

Māori impact statement

61. Many local board decisions are of importance to and impact on Māori. Local board agreements and the Annual Budget are important tools that enable and can demonstrate council’s responsiveness to Māori.

62. Local board plans, which were developed in 2017 through engagement with the community including Māori, form the basis of local priorities. There is a need to continue to build relationships between local boards and iwi, and the wider Māori community.

63. The analysis included submissions made by mana whenua and the wider Māori community who have interests in the rohe / local board area.

64. Ongoing conversations between local boards and Māori will assist to understand each other’s priorities and issues. This in turn can influence and encourage Māori participation in council’s decision-making processes.

65. Some of the proposed projects these would fund may have impacts on Māori. The impacts on Māori of any projects Auckland Council chooses to progress with as a result of this, will be assessed as part of the relevant reporting requirements.

Ngā ritenga ā-pūtea

Financial implications

66. This report is seeking local board decisions on financial matters in local board agreements that need to then be considered by the Governing Body.

67. Local boards are also providing input to regional plans. There is information in the consultation material for each plan with the financial implications of different options.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

68. Local boards are required to make recommendations on these local financial matters for the Annual Budget by 15 May 2020, to enable the Governing Body to make decisions on them when considering the Annual Budget in May.

Ngā koringa ā-muri

Next steps

69. Local boards will approve their local board agreements and corresponding work programmes.

70. Recommendations and feedback from local boards will be provided to the relevant governing body committees for consideration during decision making at the Governing Body meeting.

71. The dates of these meetings are yet to be determined as the impacts of the COVID-19 pandemic and lockdown are taken into account.

Ngā tāpirihanga

Attachments